Your total monthly debt payments (housing costs + car loans, student loans, credit cards) should not exceed 36% of your gross monthly income. 3. The 30/30/3 Rule (Conservative Safety Net)
Your monthly housing costs—including principal, interest, taxes, and insurance (PITI)—should not exceed 28% of your gross monthly income. how expensive of a house can i buy
To figure out how much house you can afford "on paper," you can use a few standard financial "rules of thumb" that lenders and financial advisors use to assess budget safety. 1. The 3x Annual Income Rule (Simplest) This is a quick way to find a target purchase price. Your total monthly debt payments (housing costs +